Forex Article | Market Analysis using Triangle Pattern

After seeing the prices rise and fall later, traders are quite difficult to identify the price in the market. With a triangle pattern, traders can be helped to identify the price in the market. In a strong trend, market decisions tend to be more easily identified by the trader. It's enough to buy when the uptrend and sell in a situation that tends to decrease (downtrend). However, when the market is not decisive in determining the price to a trend, it is difficult for traders make decisions.

This situation occurs when too many trend traders are suddenly open to the emergence of a new transaction. So what should we do when there are no highs or lows in the market while we should continue to be in forex trading?

One of the suggestions that can be done is to try to wait reversal of the price of using a triangle pattern. Triangle pattern is formed by connecting line currency currency pair with the point of support or resistance. Below we can see a triangle pattern formed on GBP/JPY. Price resistance seen from the highest point of which is gradually moving towards the lowest point. At the same time, the support line can be seen down to the lowest position. Once these areas are identified, we can proceed with the strategy break

Setting up a Stop Order Breakout
Once a triangle pattern is obtained, we can begin to prepare to do a breakout. By using OCO, both buy and sell entries can be ordered at the same time.

When creating an OCO order (Order Stop), apply a second straight pending orders, one buy and one sell.
This pattern will be much help if you are not sure where the market will lead. If the price breaks above the resistance point, we buy the GBP/JPY. Conversely, if the price falls below the point of support, we sell the currency pair. It should be noted that immediately after the order is executed, the other pending orders should be removed. When creating an OCO order (Order Stop), apply a second straight pending order, one buy and one sell.

Traditionally, most traders use a ratio of 1: 2 Risk / Reward or more while applying a method breakout. This can be extrapolated by finding twice as many pips profit as when we bet using stop losses.